MORE than half of voters believe an increase in employers paying more National Insurance would be a “tax on working people”, an exclusive poll reveals.
Fifty-seven per cent of people say the government would by default be breaking a manifesto commitment by launching the cash raid.
Small business leaders last night warned the government against the move saying it WILL hurt working people.
It comes after the Prime Minister said in the run-up to the election that he wouldn’t raise national insurance, income tax or VAT.
But Sir Keir gave the clearest sign yet today that he will impose a new “Jobs Tax” on bosses at the Budget.
Speaking in Downing Street, he told the BBC: “We were very clear in the manifesto that we wouldn’t be increasing tax on working people and we expressly said that that was income tax, that was NICs etc.”
“It wasn’t just the manifesto, we said it repeatedly in the campaign and we intend to keep the promises that we made in our manifesto.
“So I’m not going to reveal to you the details of the Budget, you know that that’s not possible at this stage.”
Chancellor Rachel Reeves all but confirmed she will raise national insurance payments for bosses in the Budget while at an investment summit on Monday.
Craig Beaumont, of the Federation of Small Businesses, said: “Hiking the jobs tax without looking after small employers would do the polar opposite – hitting working people’s jobs, pay & pensions, and increasing economic inactivity.”
Concerns was raised by 61 per cent of people who said if taxes go up on business then costs are passed on to “ordinary people” like them, the Portland Communications poll found.
Shadow Business Secretary Kevin Hollinrake said: “Opening the door to a Jobs Tax is sowing further uncertainty and chaos for businesses.
“It’s obvious to all that hiking employer National Insurance is a clear breach of Labour’s manifesto but, crucially, also a tax on jobs that will further hit confidence and damage economic growth.
“Not content with strangling businesses with red tape, Labour’s jobs tax would make it more expensive to hire people, driving up prices and slowing wages.
“Rachel Reeves was right when she first said this policy was anti-business. If they were as pro-business as they claimed, they would not pursue this damaging policy.”
